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By Abel Takele –
One major technological innovation that I see on the horizon that has significant consequences for global society is Blockchain. Blockchain is a technology that allows individuals and companies to make instantaneous transactions on a network without any middlemen. Whether this consequence is positive or negative depends on whose perspective we look at it from, but one thing is for sure that it will shake the very foundations of one of the most powerful entity which is the Banking system.
It might be hard to imagine how, and one might wonder how it is looking to disrupt the banking system; the answer is, with a simpler implementation of blockchain technology as a digital currency, Bitcoin. Bitcoin is a digital and global money system currency. It allows people to send or receive money across the internet. Bitcoin has been trending for some time now, according IHODL, this year alone its price has risen by more than 500% and it has some solid reasons behind it.
One major reason for bitcoin’s trend is regarding payments. This technology offers a high-security; low-cost way of sending payments that cuts down on the need of verification from third parties and reduces processing times for traditional bank transfers. Another major reason is in regards to loans and credit. Blockchain-enabled lending offers a more secure way of offering personal loans to a larger pool of consumers and would make the loan process cheaper, more efficient and more secure.
In addition, Blockchain is decentralized. It lets people or companies add and verify their transactions without a single governing body making sure everything is okay. Finally, Blockchain is instantaneous. Transactions on a Blockchain gets processed and verified much more quickly than the alternative systems.
In conclusion, it is not that hard to see from the above mentioned benefits of Blockchain how it is threatening the very vast and powerful banking system. It is transforming everything from payments transactions to how money is raised in private market, which could eventually replace the traditional banking industry.
References
Rashkovich, B. (2018, December 12). Blockchain Explained: A Simple Explanation of How It Works. Retrieved from https://www.fundera.com/blog/blockchain-explained
Villasenor, J. (2014, May 13). The Future Of Innovation: Five Things We Can Learn From Bitcoin. Retrieved from https://www.forbes.com/sites/johnvillasenor/2014/05/12/the-future-of-innovation-five-things-we-can-learn-from-bitcoin/#3fb38702869f
Villasenor, J. (2014, May 13). The Future Of Innovation: Five Things We Can Learn From Bitcoin. Retrieved from https://www.forbes.com/sites/johnvillasenor/2014/05/12/the-future-of-innovation-five-things-we-can-learn-from-bitcoin/#3fb38702869f
